DoD Awards $38.9M for 52,815 Laptops Under Full and Open Competition
Contract Overview
Contract Amount: $38,885,572 ($38.9M)
Contractor: HPI Federal LLC
Awarding Agency: Department of Defense
Start Date: 2024-01-31
End Date: 2025-01-02
Contract Duration: 337 days
Daily Burn Rate: $115.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GENERAL PURPOSE LAPTOP (GPL), TAMCN: A91007G W/DOCK, QUANTITY UP TO 52,815
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004
Plain-Language Summary
Department of Defense obligated $38.9 million to HPI FEDERAL LLC for work described as: GENERAL PURPOSE LAPTOP (GPL), TAMCN: A91007G W/DOCK, QUANTITY UP TO 52,815 Key points: 1. Significant volume of laptops awarded, indicating substantial demand. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Risk of obsolescence with standard laptops, though mitigated by dock inclusion. 4. IT hardware procurement is a consistent area of government spending.
Value Assessment
Rating: good
The average price per unit is approximately $736. This appears competitive for a general-purpose laptop with a dock, especially considering the large quantity and firm-fixed-price contract type.
Cost Per Unit: $736
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing all responsible sources to submit offers. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is expected to yield good value for taxpayer dollars by leveraging market competition.
Public Impact
Ensures widespread availability of essential computing equipment for military personnel. Supports the operational readiness of the Department of the Navy. Drives demand in the IT hardware manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for rapid technology obsolescence in IT hardware.
- Dependence on a single awardee for a large quantity.
Positive Signals
- Large quantity award can lead to economies of scale.
- Firm-fixed-price contract provides cost certainty.
- Full and open competition promotes market efficiency.
Sector Analysis
This procurement falls within the IT hardware sector, specifically electronic computer manufacturing. Government spending on laptops is a recurring necessity for maintaining operational capabilities across various agencies.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication of small business participation in this particular award. Larger prime contractors may subcontract to small businesses.
Oversight & Accountability
The award was a delivery order under a larger contract, suggesting existing oversight mechanisms are in place. The firm-fixed-price structure provides cost control, but ongoing monitoring of performance and delivery is crucial.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Technology Obsolescence
- Potential for Vendor Lock-in (if not managed)
- Supply Chain Disruptions
- Security Vulnerabilities in older hardware/software
Tags
electronic-computer-manufacturing, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.9 million to HPI FEDERAL LLC. GENERAL PURPOSE LAPTOP (GPL), TAMCN: A91007G W/DOCK, QUANTITY UP TO 52,815
Who is the contractor on this award?
The obligated recipient is HPI FEDERAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $38.9 million.
What is the period of performance?
Start: 2024-01-31. End: 2025-01-02.
What is the specific model or configuration of the General Purpose Laptop (GPL) being procured, and how does it align with current technological standards for military use?
The provided data does not specify the exact model or configuration of the GPL. Understanding the technical specifications is crucial to assess if the $736 per-unit cost is justified and if the laptops meet the demanding requirements of military operations, considering factors like durability, security features, and processing power.
What is the potential risk associated with the rapid obsolescence of standard laptops, and what mitigation strategies are in place?
Standard laptops can become technologically outdated quickly, impacting performance and security. Mitigation might include shorter refresh cycles, robust warranty and support agreements, or procurement of models with longer support lifecycles. The inclusion of a dock may extend usability, but the core computing components remain susceptible to obsolescence.
How does the inclusion of a dock impact the overall value proposition and per-unit cost compared to similar procurements?
The dock enhances the functionality and potentially the lifespan of the laptop by providing a stable workstation setup. The $736 per-unit cost, which includes the dock, needs to be benchmarked against procurements of similar laptop-dock bundles to fully assess its value. Without this comparison, it's difficult to definitively state if it represents excellent value.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: M6785424Q4008
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1299 PENNSYLVANIA AVE NW STE 475, WASHINGTON, DC, 20004
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,885,572
Exercised Options: $38,885,572
Current Obligation: $38,885,572
Actual Outlays: $20,500,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD47B
IDV Type: GWAC
Timeline
Start Date: 2024-01-31
Current End Date: 2025-01-02
Potential End Date: 2025-01-02 00:00:00
Last Modified: 2024-08-30
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